Why Is Gold Slumping Again?

The price of gold, which touched $1,750 an ounce in December, is now around $1,600 - and falling. Polya Lesova joins Markets Hub. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... I ... I see a lot to teach him ... to keep you waiting what topical ... older than sixteen hundred dollars an ounce and seemed to fall into that well this morning ... this is a commodity that was ... people love with them and the two thousand dollars an ounce and beyond this is a commodity ... that was a rise in almost parabolic the exponentially ... it has turned ... and this move under sixteen hundred in the league this sort of definitive factor and that was all about ... Polya Lesova for MarketWatch is here to talk about it ... he is very curious right ... yes it's a very good and I think more gold contends that the six-month note this morning in on track for a fifth consecutive session of losses ... because that is all well and if you are down more than five percent ... I'm so into domestic selloff in this asset and there it does ... several things going on ... but one thing specifically today is that the Fed open market Committee is due to the States many ... have found a ten year a meeting and Alaska and produced meeting minutes they'll SXC Opinion dramatic sell off in gold ... because that's when someone for CEOs ... Don't devour us scaling back asset purchases was helping them altogether ... by the end of the year so I think there's some fear into my kid about what ... these mean it's nice to know tell ... you that it's a weird situation could you would think given that almost every central bank on the planet seems to be this easy even throwing more money out there ... maybe there is an inflation rate now showing up but I mean ... that's got Acree Italy's crisis in Georgia are gold bugs love yes well Weisel turnaround ... well I'm turning ... yet well it's a good question but we know we've seen a big rally in U S stocks sell for Eskimo investors ... are an on weak U S stocks are now which means that the investment interest in gold has decreased ... we've also had the improving economic PayPal overall in recent weeks and that argues ... for a risk on mold ... I and against the safe haven appeal of color ... and a nice old finder dangling on seeing a massive pickup in inflation that they did today for example right ... I says Alkmaar Ensenada zero point two percent in January ... sole ... goal was aam ... and as an inflation hedge is just now seen as useful at least right now but going by our our during ... the break it is ... just you wait at some point gold will come back and wonder what are people saying about Goldman dead women voters and what appeals and where they see it going ... well the duty on this now definitive move into ... what one thing I did investors are the one team is actually the technical picture more and cold day something called ... a death cross it has been tested in ... nearly all of the debt crisis ... it has to do with the fifty day moving average and it still kind of a moving average is some ... argument and nine the market when their colic as sexy ... ideas at this point that but ... I did that Kynikos are not looking ... very strong from college right now and given the upcoming release of the Fed minutes ... into the center short-term ... it seems to be pointing lower ... Polya Lesova think you're a much